Question about Vanguard ETFs and General Investing

Windows7forever on 26/09/2025 - 18:44

Hi,

I have a basic understanding of investing but am new to the world of ETFs and Indexed Funds.

I am tossing up between a 50/50 split between VAS/VGS or 100% VDHG.

VDHG has a higher fee (0.27%) compared to the other 2 options which are 0.07% and 0.18% respectively but it seems like the better choice because it is partically hedged against foreign currency fluctuations and overall has a good mix of global investments.

Any thoughts about this?

Also, is there an option to reinvest dividend earnings from shares so that I am not paying tax on dividends?

I am probably 20 years away from retirement and just want something that I can regularly sock extra cash into and forget about. Buy and hold for the long term essentially. I aim to start small and add more to the principal once I become more confident investing.

I have found that PTDs are not great because the return rate is so low and also you are taxed on any interest gains. I have also recently found out how concessional tax contributions can reduce my majority tax burden to basically 15% so next time I get a job I will be looking into funnelling more funds into super either via salary sacrificing or concessional/voluntary contributions.

Financial Exchange Traded Fund

Comments

  • SBOB on 26/09/2025 - 18:54
    +5

    am probably 20 years away from retirement

    Then skip the bonds portion and either

    Vanguard VDAL
    Or
    betashares DHHF

    Zero thought/effort buy every whatever interval you decide to invest at.
    VDAL/DHHF and chill..

    You could DIY your own mix but I find the marginal difference not worth the extra brain effort.
    I make weekly buys of DHHF (via CMC market) while I wait for the microwave to finish heating up my lunch

    • Daabido on 26/09/2025 - 19:48

      What is the benefit of using CMC Market v directly with Betashares?

      • SBOB on 26/09/2025 - 20:39
        +1

        Nothing much. Just some flexibility if I want to move (chess sponsored)
        CMC market is free buys for $1k a day, which suits my purchase cycles.

        Starting again I'd likely start at betashares anyway (have an account there, just yet to use it)

        • soan papdi on 26/09/2025 - 23:38

          Beta offers free transfers without triggering a cgt event. Very tempting.

  • cheaplee on 26/09/2025 - 19:00
    +9

    DRP does not mean you are exempt from paying tax. Dividends are still required to be declared as income.

  • Checkmate3023 on 26/09/2025 - 19:29

    Dividends you still need to pay tax on - but if they are 'franked' you are given a 'franking credit on the tax paid by the company'

    VDHG is a great option for a set and forget job

  • cashless on 26/09/2025 - 22:13

    Always check what has been posted before
    https://www.ozbargain.com.au/node/923512

  • JIMB0 on 26/09/2025 - 23:53
    +1

    Why don't you put it into super?

    • Windows7forever on 27/09/2025 - 07:03

      This is probably the easist option - set and forget. ETFs have tax implications for dividends and somebody was mentioning having to report the "cost base" in their tax returns when/if they sell them which is apparently a complicated process. If I can keep my affairs simple then I can continue to do my own tax and will not require an accountant every FY. The only downside to Super is that the money is hard locked away until you reach preservation age so I would not want to put 100% in.

      • HardQuiz on 27/09/2025 - 07:27

        You have to start somewhere.

    • conan2000 on 27/09/2025 - 08:45
      +2

      Definitely what I would suggest as the starting point as well, maximise your contributions up to the super contribution caps at least and then punt any extra into other investments.

      Also note that if your take home hits $250k package you will get slugged with an extra contribution tax (jumps from 15% to 30% tax) making it less beneficial (still lower than marginal rate, but it's not so attractive given how long it is locked away for).

      Personally what I do - maximise what goes into Super, and I automate a fortnightly transfer to Vanguard of approximately 5% of take home income and reserve 5% for future investment property investment. I picked 2 funds in Vanguard and split the investment between them.

      I don't like everything tied up in one investment type. But shares are way less hassle than property.

  • EightImmortals on 27/09/2025 - 08:16

    Stockspot is another option worth looking into. They do mostly ETF's with gold as a hedge and have recently added BTC and ETH etf's is you wanted to add them in (optional).

  • Shadowsfury on 27/09/2025 - 11:01
    +5

    Reading this site back to front will probably answer 99.5% of any questions you might have
    https://passiveinvestingaustralia.com/

  • OZB Al on 27/09/2025 - 11:49
    +3

    Step one, max out this year's conssessional super contributions.
    Step two, use any remaining carry forward conssessional super contributions from the last five years.
    Step three, then look at investing elsewhere, VDHG is a great choice if you want to buy one thing to set and forget.

    • andrew229 on 11/10/2025 - 22:25

      good advice.

      max out this year's concessional super contributions. !

      I prefer VAS and VGS, but

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